Genel Energy PLC (GENL) Genel Energy PLC: Trading and operations
update 11-May-2023 / 07:00 GMT/BST
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11 May 2023
Genel Energy plc
Trading and operations update
Genel Energy plc ('Genel' or 'the Company') issues the following
trading and operations update relating to Q1 2023, ahead of the
Company's Annual General Meeting ('AGM'), which is being held
today.
Paul Weir, Chief Executive of Genel, said:
"The prolonged closure of the Iraq-Turkey pipeline is very
disappointing and, although there continues to be speculation
regarding the timing of resumption of exports, we cannot predict
with any certainty when exports will recommence. In anticipation of
exports resuming we are seeking clarity on future arrangements and
a mechanism in place for regular and predictable payments going
forward.
Delays in payments and the suspension of exports have resulted
in significant cash generation being deferred and we are scaling
back our planned activity accordingly. We continue to reduce costs
so that the size and shape of the organisation matches the needs of
the business.
Our financial position is robust, and we remain focused on using
our significant liquidity to add new assets to the portfolio that
will fund the long-term payment of our established dividend."
Q1 2023
-- Zero lost time incidents in 2023, with over four million
hours worked since the last incident
-- Net production of 26,000 bopd in Q1 2022 (30,520 bopd in Q1
2022)
-- Pending approval at the AGM today, a dividend distribution of
12¢ (9.6588 pence) per share will be paidon 19 May 2023
-- USD61 million of cash proceeds were received from the
Kurdistan Regional Government ('KRG') in Q1 2023,relating to August
and September 2022
-- Capital expenditure of USD24 million in Q1 2023, of which
USD21 million was cost recoverable spend at Tawkeand Taq Taq
-- Cash of USD496 million at 31 March 2023 (USD495 million at 31
December 2022)
-- Net cash under IFRS of USD229 million at 31 March 2023
(USD228 million at 31 December 2022)? Total debt of USD274 million
at 31 March 2023 (USD274 million at 31 December 2022)
2023 OUTLOOK AND GUIDANCE
-- Due to the closure of the Iraq-Turkey Pipeline on 25 March
2023 and resulting impact on production,Genel's production guidance
of 27-29,000 bopd is no longer valid. New guidance will be issued
once the pipelinereopens and investment plans are confirmed
-- Genel now expects capital expenditure to be below USD100
million (previous guidance USD100-125 million)
-- Payments totalling USD80 million are outstanding relating to
production from October 2022 to January 2023,with USD110 million of
total sales invoices submitted up to and including March 2023
PRODUCTION BUSINESS
-- Tawke PSC (25% working interest)? Gross production averaged
93,880 bopd in Q1 2023 (106,470 bopd in Q1 2022), due to planned
wellintervention operations temporarily constraining overall
production ? Given the uncertain timing of export resumption and
the delays in payments, spend at the Tawkelicence has been scaled
back, with the number of active rigs to drop from four at the start
of 2023 to none inH2 2023 ? Five wells were completed and another
three wells spudded in Q1 2023, with Tawke licence drilling toend
in May
-- Sarta (30% working interest and operator)? Gross production
averaged 3,160 bopd in Q1 2023 (5,590 bopd in Q1 2022) ? As
previously stated, Genel's focus is on making ongoing production
from Sarta profitable
-- Taq Taq PSC (44% working interest and joint operator)? Gross
production averaged 3,610 bopd in Q1 2023 (5,070 bopd in Q1 2022) ?
Taq Taq continues to produce into storage, with around one week of
storage capacity remaining
PRE-PRODUCTION BUSINESS
-- Somaliland? Preparation continues for the drilling of the
Toosan-1 well on the highly prospective SL10B13 block(51% working
interest and operator) ? The Toosan prospect contains stacked
Mesozoic reservoir objectives, with multiple individualprospective
resource estimates each ranging from 100 to 200 MMbbls ? Civil work
at the wellsite is set to get underway shortly, and the
Environmental, Social and HealthImpact Assessment is nearing
completion ? Genel continues to target a spud date in H1 2024,
acknowledging the challenges of operating in such afrontier area
with limited existing infrastructure
-- Morocco? The farm-out programme on the Lagzira block (75%
working interest and operator) is ongoing
ESG
-- Genel's 2022 Sustainability Report has been issued today,
detailing our environmental performance and thepositive impact that
we strive to have on the communities in which we operate.
Highlights include:? Zero LTIs across all Genel operations with 3
million hours worked incident free ? Zero waste to landfill from
operations at Sarta, with 91% recycled ? Solar panel and battery
storage unit operational at Sarta ? Improvement in both CDP climate
change and water security score
ARBITRATION
-- The London-seated international arbitration regarding Genel's
claim for substantial compensation from theKRG following the
termination of the Miran and Bina Bawi PSCs is progressing. The
trial remains scheduled forFebruary 2024
-ends-
For further information, please contact:
Genel Energy
+44 20 7659 5100
Andrew Benbow, Head of Communications
Vigo Consulting
+44 20 7390 0230
Patrick d'Ancona
This announcement includes inside information.
Notes to editors:
Genel Energy is a socially responsible oil producer listed on
the main market of the London Stock Exchange (LSE: GENL, LEI:
549300IVCJDWC3LR8F94). The Company is one of the largest
London-listed independent hydrocarbon producers, with an asset
portfolio that positions us well for a future of fewer and better
natural resources projects. Genel has low-cost and low-carbon
production from the Kurdistan Region of Iraq, and a committed
dividend programme that is material and sustainable. Genel
continues to seek opportunities to add new resilient and
cash-generative assets to its portfolio, with the goal of
progressing its dividend in the long-term. For further information,
please refer to www.genelenergy.com
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Dissemination of a Regulatory Announcement that contains inside
information in accordance with the Market Abuse Regulation (MAR),
transmitted by EQS Group. The issuer is solely responsible for the
content of this announcement.
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ISIN: JE00B55Q3P39, NO0010894330
Category Code: TST
TIDM: GENL
LEI Code: 549300IVCJDWC3LR8F94
Sequence No.: 242827
EQS News ID: 1630011
End of Announcement EQS News Service
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